Operating a motor trade business comes with its own set of risks, especially when it involves vehicles being driven on the road. Whether you are a car dealer, mechanic, or operate a vehicle recovery service, having adequate insurance coverage is crucial to protect your business from potential financial losses.
One type of insurance that is specifically designed for businesses operating in the motor trade industry is Road Risk Motor Trade Insurance. This type of insurance provides coverage for vehicles that are used as part of your business operations and are driven on public roads.
So, what exactly does Road Risk Motor Trade Insurance cover? Essentially, this type of insurance provides protection against risks such as accidents, theft, fire damage, and third-party liability while driving vehicles for business purposes. It ensures that if something goes wrong while one of your employees is out on the road conducting business activities, you won’t be left facing hefty repair bills or legal expenses.
There are three levels of cover available with road risk motor trade insurance: Third Party Only (TPO), Third Party Fire and Theft (TPFT), and Comprehensive. TPO is the most basic level of cover and only protects against claims made by third parties for injury or damage to their property. TPFT includes TPO cover but also provides protection against theft and fire damage to your own vehicles. Comprehensive cover offers the highest level of protection and includes all the benefits of TPFT as well as covering repairs to your own vehicles in case they are damaged in an accident.
When determining the level of cover you need for your motor trade business, it’s important to consider factors such as the value of your vehicles, how often they are driven on public roads, and whether you have employees who drive company vehicles. By assessing these factors carefully, you can choose a policy that best suits your needs and budget.
It’s worth noting that Road Risk Motor Trade Insurance does not typically provide coverage for other aspects of your business operations such as premises or equipment. For comprehensive protection across all areas of your motor trade business, you may need to consider additional types of insurance such as Public Liability Insurance or Employer’s Liability Insurance.
In conclusion, having Road Risk Motor Trade Insurance in place is essential for protecting your business while out on the road. By choosing a policy that matches your specific requirements and ensuring you have adequate coverage in place at all times, you can have peace of mind knowing that both your employees and assets are safeguarded against unforeseen events.
